Gain on Reposession of Real Property

[Bird Legs]

Please excuse me for this simple question but my mind is not in great shape. Too many doctor visits.
Client owned a rent house. He sold it in 2005 carrying the note. Client repossessed the property in March 2006. There was a gain on repossession of $3200. The gain is added
to basis to calculate the new basis.
Question: how is this gain reported on the 1040? Sched. D? 4797?
Your assistance in this is greatly appreciated.

[solomon]

On the form on which the sale was originally reported.

[Bird Legs]

Solomon

Thank you very much. I am in need of all the help any one can give.

[Joe Btfsplk]

Reposession

In the 2002 tax year, I had a client who reposessed three rent houses that he had sold on an installment sales arrangement. I reported the gain on page 2 of Form 4797. I don't remember all about the research I did, but that was the way I handled it and the IRS did not question it.

[Bird Legs]

Joe-Gain on Repossession

Thank you very much for your response. Greatly appreciated.